GM financial analysis

Topics: General Motors, Automotive industry, Generally Accepted Accounting Principles Pages: 37 (5450 words) Published: September 26, 2013


table of contents
I-COMPANY INFORMATION
COMPANY HISTORY2
COMPANY STRUCTURE & MANAGEMENT3
PRODUCTS & SERVICES4
MOST RECENT COMPANY EXPENSIONS & INVESTMENTS4
GENERAL MOTORS CHALLENGES & OPPORTUNITIES5
II-INDUDSTRY CONDITION & COMPETITORS
AUTOMOTIVE INDUSTRY & COMPETITORS6
AUTOMOTIVE INDUSTRY CHALLENGES7
INDUSTRY OPPORTUNITIES8
III-RATIO & STOCKS ANALYSIS
GM TREND ANALYSIS9
GM, FORD & TOYOTA BENCHMARK ANALYSIS10
STOCK PERFORMANCES12
IV-CONCLUSION
CONCLUSION14
V-APPENDIX
COMPANY FINANCIAL STATEMENTS16
RATIO CALCULATIONS21
WORKS CITED27
I- company information
General Motors (GM) is one of the biggest automotive manufacturers in the world, and the largest in the U.S. It’s headquarter is located in Detroit, MI. GM has total of 396 facilities in 6 continents and supplies more than 21000 dealers all around the world (almost 1/4th of it is in the U.S.). Its current CEO is Dan Akerson, and it has more than 212,000 employees worldwide. Its board of directors consists of 15 board members . Company History

General Motors was founded by William Durant on September 16, 1908 in Flint, MI as a holding company for Buick (which was established in 1899). Between 1908 and 1931, General Motors bought Oldsmobile, Chevrolet, Vauxhall, Holden, and Opel and created the Pontiac and Cadillac brands. All these new brands and models diversified its selections. In 1925, GM also moved its headquarters from Flint to Detroit, MI. By late 1920’s, GM became the biggest car company in the U.S. In 1930’s, GM first purchased the Yellow Coach Bus company started to manufacture buses. Second, by stock exchange it took control of North American Aviation (NAA), which GM divested NAA by 1948. In 1937, GM recognized United Auto Workers (UAW) labor union as the only bargaining power for its workers. During WWII, GM manufactured tanks, aircrafts and trucks to the U.S. Government. In 1955, GM became the first American corporation to pay more than $1 billion in taxes. During 1960’s and 70’s, GM offered many different car and truck models. In addition to this, it created or adopted many new technologies into its production cars, such as airbag or the catalytic converter. By early 1980’s, German and Japan car manufacturers began to enter the U.S. market with more fuel efficient smaller cars. GM tried to adapt to this new change, but still lost some of its market share. In 1980’s, GM also began to establish new factories outside of the U.S., created Saturn brand and added SAAB and Hummer to its family. In 1995, GM sales in the U.S. markets reached to 5 million units and 3 million units in rest of the world. GM sales continue to increase remaining of the 90s, but also its debt began to increase. The stock market crash in 2001 also affected the overall company structure. After this recession, GM began to work on electric and hybrid cars. Shortly after this decision, the 2008 crisis dramatically affected the automobile industry. The U.S. Government provided a loan to GM, but still GM filed for bankruptcy by June 1 2009. As a result of this, GM end up selling or dissolving majority of the vehicle brands and formed a new General Motors. Today GM is a smaller company than before, and it has begun to pay its debt . company structure & Management

General Motors is a multinational and multidivisional corporation. Like any corporation that is open to the public, the board of directors is the highest body. Shareholders select the board of directors and the board of directors selects the CEO. GM’s board consists of 15 members including the CEO. The board of directors oversea the key activities, but CEO and subordinate executives of CEO run the organization based on board decisions. GM has total of 14 vice presidents, and each one of them is in charge of one of the four segment (GM North America, GM Europe, GM South America and GM International Operations), one of the four major brands (Cadillac,...

Cited: Bennett, J. (2013, January 8). CEO Akerson Sets Goals for a Revitalized GM. Retrieved April 1, 2013, from The Wall Street Journal: http://online.wsj.com/article/SB10001424127887323482504578229852571958928.html
Constantini, F
Deaton, J. P. (2010, November 8). Consumers Holding onto Cars Longer. Retrieved April 1, 2013, from USNews.com: http://usnews.rankingsandreviews.com/cars-trucks/daily-news/101108-Consumers-Holding-onto-Cars-Longer/
Everly, S
General Motor Company. (2013, February 15). GM 2012 10-K report. Retrieved April 1, 2013, from U.S. Security & Exchange Commission : http://www.sec.gov/Archives/edgar/data/1467858/000146785813000025/gm201210k.htm
General Motors
General Motors Press Release. (2012, August 23). GM Commits Next-Gen Chevrolet Cruze to Ohio Plants. Retrieved March 30, 2013, from GM News: http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2012/Aug/0823_cruze.html
Newman, R
OCIA. (2013). Automotive Statistics. Retrieved April 1, 2013, from OCIA: http://oica.net/
Schoenberger, R
SEC. (2013, April 1). 10-K Fillings. Retrieved from U.S. Securities and Exchange Commission: http://www.sec.gov/Archives
Snavely, B
Toyota Motor Company. (2013). Financial Statements. Retrieved April 10, 2013, from Toyota Motor Corporation Global Website: http://www.toyota-global.com/investors/financial_data/
YahooFinance
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